Amazing company. Investing thesis is varied - innovative technology, strong management, partner with INTEL, customer stickiness, industry tailwinds etc. With the latest revenue update, we should expect strong results for the next 3 quarters.
Gene’s report on 9 January “Better than expected guidance” was spot on and he saw the impending impact that is unfolding for AEM, arising from INTEL’s new business strategies. With AEM’s latest revenue guidance, Gene has now raised the target price aggressively to $4.04. Only time will tell if this is realistic. With the record Q1 results and the subsequent new revenue guidance, these could mean that the tailwinds behind AEM are both credible and sustainable. I may not wish to bet against Gene’s latest TP - his understanding of the industry which AEM operates in may be much more than we know.
Citi has given a "Buy" call and target price of $6.37.Citibank analyst Jame Osman has initiated coverage on AEM Holdings with a “buy” call and $6.37 target price, saying the company is “well-positioned for the next phase of business growth.”Osman, in an April 18 report, points out that AEM is likely to benefit from its key customer’s plans to significantly increase its capex and production capacity. This is as part of its plans for market leadership and a new product roadmap.
The revival of AEM share price (SGX: AWX) should be due to the recent good news from its most important client – Intel, which provided its business update on 30 March 2023.
*** After four delays over two years, Intel finally launches its much-anticipated 4th generation Xeon processors, Sapphire Rapids for both laptops and servers. According to Intel, this is the highest quality data center CPU the company has ever delivered, and the ramp is continuing aggressively.
*** But what made the recent Intel’s announcement so special for AEM share price (SGX: AWX) was the series of upcoming product launches by Intel. Following Sapphire Rapids, hot on the heels will be the launch of Intel’s 5th generation Xeon processors, Emerald Rapids in 4th quarter 2023.
*** And that’s not all, Sierra Forest and Granite Rapids will be released by Intel in 2024. The series of product launches showed that Intel is determined to regain its market share in the data center CPU segment.
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